Although we all need to own homes, not all of us can afford to buy a home with cash. Most of us need mortgages, and we are aware of different mortgage lenders, mortgage companies and current mortgage interest rates. The best mortgage lenders are:
- SoFi Mortgage – Best mortgage lender for low upfront costs
- Lenda – Best mortgage lender for no fees for origination
- Guaranteed Rate — Best mortgage lender for customer satisfaction and diverse loan terms
- Quicken/Rocket Mortgage — Best mortgage lender for customer satisfaction and fast application
SoFi Mortgage – This mortgage lender is known for its low upfront costs. It is a new mortgage lender that does not care about debt-to-income ratios and borrower credit scores. It is all about stable employment, bill payment history, income, and future earnings potential. It is best for people because it cuts down application and origination fees while offering better rates in line with its competitors.
Lenda – This mortgage lender is best for its no fees for brokers and origination. Lenda does not try to be with all people to its credit. Instead, it is known for the fact that it has its target audience in mind. Lenda is best for digitally savvy customers who are always searching for quick, low-cost, and largely paperless solution to their mortgage problem. This makes Lenda one of the best mortgage lenders in 2019.
Guaranteed Rate – They are best for their customer satisfaction and diverse loan terms. Their rates are similar to that of the Quicken/Rocket Mortgage Lender on many fronts. These people offer different loan offerings for many credit scores, offer competitive rates, easy online application, and they have higher scores in customer satisfaction ratings. They are better because they have 1,700 branches nationally for homebuyers who will like a face-to-face application process.
Quicken/Rocket Mortgage – This is best known for its fast application process and customer satisfaction. They are the best mortgage lender because they not only offer a seamless online application; they also have a higher rating score in customer satisfaction. They provide different offerings that meet the demands of many homebuyers.
Mortgages 101
A mortgage is a loan that makes use of a real estate as its collateral. A mortgage lender lends you enough money to buy a home with the agreement that you pay the money back regularly. There are two interest rates involved – the fixed or changeable interest rate; and if you find it hard to pay the money, they will claim the property. Mortgages have been available since the 1700s but not as common as until the 20th century.
Interest Rates And Mortgages
There is no point in talking about mortgages and not discussing interest rates; this is because interest rates are central to the loans. Currently, there are low-interest rates charged by mortgage lenders, and it is just moving up. In 2012, a 30-year fixed-rate mortgage attracted an interest rate of 3.31% while that of 15-year loans is less than 3%.
What Are Fixed-Rate Mortgages
For a fixed-rate mortgage, you are paying the same interest rate all through the life of your loan. This means that once you start paying the interest, it is the same till you pay up the loan. Such interest rates are unchanged all through; from the beginning to the end of the loan.
What Are Adjustable-Rate Mortgages
While fixed-rate mortgages are unchanged, adjustable-rate mortgages offer flexibility and make it easy for homeowners to pay low-interest rates. While many homeowners prefer to go for the fixed-rates mortgages, many other homeowners prefer the adjustable-rate mortgages due to its flexibility in the loan payment. There are various ARMs of adjustable-rate mortgages like the 5/1, 7/1, and 10/1 ARMs. The ARM rates are always lower than that of the fixed-rate mortgages. If you like to stay in your home for decades, you may want to go for the adjustable-rate mortgages.
Why Your Credit Score Matters
You get different interest rates from different mortgage lenders when you want to borrow money; from poor rate to quite good rates. To get the best mortgage rates from mortgage lenders, you must have a high credit score. Mortgage lenders will like to know that you are a good credit bet and they will offer you the best interest rate. It is then better that you improve your credit score as this will represent who you are. Here are tips to improve your credit score:
- Pay bills on time
- Keep debt levels low
- Keep your old accounts open
- Rate shop in 2 to 6 weeks
- Establish history with a credit card
How To Save On A Mortgage
To save a mortgage, here are some valuable home-buying tactics you need to consider:
- Shop around
- Put 20% down
- Get pre-approved
- Make extra payments
- Get a 15-year mortgage
- Don’t buy more home than your budget
In conclusion, it is a great thing to buy a home, but the process can be stressful sometimes. To save more, you need to know more about mortgages and the different interest rates available. The best way to start is by staying current with the best interest rates and meeting the best mortgage lenders.
